UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education
MARK SCHEME for the October/November 2010 question paper
for the guidance of teachers
0452 ACCOUNTING
0452/11
Paper 1, maximum raw mark 120
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners’ meeting before marking began,
which would have considered the acceptability of alternative answers.
Mark schemes must be read in conjunction with the question papers and the report on the
examination.
•
CIE will not enter into discussions or correspondence in connection with these mark schemes.
CIE is publishing the mark schemes for the October/November 2010 question papers for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level
syllabuses.
Page 2
1
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
(a) D
[1]
(b) B
[1]
(c) B
[1]
(d) A
[1]
(e) C
[1]
(f) D
[1]
(g) D
[1]
(h) C
[1]
(i) B
[1]
(j) A
[1]
[Total: 10]
2
(a) [Sales] invoice
) but only 1 mark for “invoice”
[Purchase] invoice )
Credit note
Debit note
Cheque, receipt
Petty cash voucher
NOT: statement, bank statement, cash book, journals, day books
any two, 1 mark each
[2]
(b)
Income
Bad debt recovered
(1)
Interest charged to customers
on overdue accounts
(1)
Expense
(1)
Discount allowed
[3]
© UCLES 2010
Page 3
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
(c)
Debit
Credit
(1)
(d) Reliability / reliable
[1]
(e) Commission
[1]
(f) A shareholder’s liability for a company’s debts is limited to the amount they have paid for
their shares.
[2]
Accept: shareholder’s assets are not available to pay company debts/losses
(g) 50 dresses bought, 30 sold, 20 remaining
Cost $13.00, carriage inwards $1.00 each, total $14.00
Net realisable value $13.50
Value in balance sheet 20 (1) × $13.50 (1) = $270 (1)
Correct figures only, not OF total
[3]
(h) (i) $150.00 – $80.50 = $69.50 (2)
(ii) $80.50 (2)
(i) Rate of stock turnover =
=
=
Or:
=
=
=
[4]
Cost of goods sold / Average stock
45 000 (1) / (6000 + 9000) (1) / 2 (1)
6 times (1)OF
Average stock / Cost of goods sold × 365
( (6000 + 9000) (1) / 2 (1) ) / 45 000 (1) × 365
60.83 days (1)OF
Accept 61 or 60 days
[4]
[4]
Note: calculation mark may be awarded if “times” or “days” not stated but not if any other
description shown e.g. %
[Total: 21]
3
(a) Items on bank statement not shown in cash book
(accept individual items, bank charges, bank interest, etc.)
Items in cash book not on bank statement
(accept individual items, cheques not yet presented, etc.)
Errors in cash book or made by bank (accept only one type of error)
Dishonoured cheques
any two, 2 marks each
© UCLES 2010
[4]
Page 4
(b)
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
Ottoman – Cash Book (bank columns)
Date
Detail
Dr
$
Date
Sept 30
30
13
Balance b/d
Rent
[Cash] sales
(not to correct
error)
850.00 (1)
800.00 (2)
300.00 (2)
1950.00….
Sept 30
30
Detail
Bank charges
Balance c/d
(no aliens,
may award if
account
reversed)
Cr
$
60.00 (1)
1890.00 (2)
1950.00…..
(Marks are for detail and amount, not date) Balance mark only for reversed cash book.
(c)
[8]
Ottoman
Bank Reconciliation Statement at 30 September 2010
Either:
$
Balance on updated cash book [at 30 September 2010]
(accept updated balance, balance b/d if agrees with (b))
1890.00 (2)OF
(must agree with (b) above)
Add: cheques issued not yet paid (unpresented cheques)
250.00 (2)
Less: cheque paid in not yet credited by bank
(accept reasonable description)
(480.00) (2)
(marks are for description, amount and correct + or – )
Balance on bank statement [at 30 September 2010]
1660.00 (1)
(must be correct figure)
[7]
Or:
$
Balance on bank statement [at 30 September 2010]
Less: cheques issued not yet paid (unpresented cheques)
Add: cheque paid in [not yet credited by bank]
(accept reasonable description)
1660.00 (1)
(must be correct figure)
(250.00) (2)
480.00 (2)
(marks are for description, amount and correct + or – )
Balance on updated cash book [at 30 September 2010]
(accept updated balance, balance b/d if agrees with (b))
1890.00 (2)OF
(must agree with (b) above)
[7]
© UCLES 2010
Page 5
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
(d) (i) Current assets (2)
accept current liabilities if overdrawn on OF
(ii) $1890 (2)OF from (b) above, not (c) if different
[4]
[Total: 23]
4
(a) To inform or remind the customer of the amount due
To confirm the settlement terms
To ensure that no errors have been made by customer or supplier
Other relevant comment any one
[2]
(b) (i) Sam had taken 2% discount ($8.00)
accept any mention of discount taken, whether entitled or not
[1]
(ii) No, not correct amount (1)
Sam did not pay the amount due within the 21 days / time limit allowed to earn any
discount (2)
[3]
(c) (i) Amount due
$265.00 (1) @ 2% (1) = $5.30 (1)
(correct figures only)
[3]
(ii) Net amount due $265.00 (1) – $5.30 (1) = $259.70 (1)
(correct figures only)
(d)
September
1
Balance b/d
7
[Sales][invoice][301]
12 [Sales][invoice][330]
September
September
19 Sam Sumo
not total sales
returns
Sam Sumo account
$
September
400.00 (1) 19 [Sales][returns in][Cr note 29]
56.50 (1) 28 Bank
217.00 (1) 30 Balance c/d
673.50
(OF if no aliens, may award) if
account reversed)
Sales account
$
September
7
Sam Sumo
not invoice or total sales
12 Sam Sumo
not invoice or total sales
Sales returns account
$
September
16.50 (1)
© UCLES 2010
[3]
$
16.50 (1)
392.00 (1)
265.00 (1)
673.50
$
56.50 (1)
217.00 (1)
$
Page 6
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Cash book – bank column
$
September
392.00 (1)
September
28 Sam Sumo
Paper
11
$
(Marks are for detail, correct amount and correct Dr or Cr)
[10]
(d) Pay balance within 21 days / by due date / within terms / on time
(not pay more quickly, prompt payment, etc.)
[2]
[Total: 24]
5
(a) To spread the cost of the asset over its useful life
[2]
(not to calculate profit or loss on sale etc.)
(not causes of depreciation, but accept depletion, wear and tear, obsolescence and usage
over time as reasons for need to depreciate.)
(b) (i) $3200 (1) – $700 (1) = $2500 / 5 (1) = $500 (1)OF
(Note: if answer then goes on to give NBV, do not award calculation mark, so max 3)
(ii) Same amount – $500 (2) [OF only if agrees with (b) (i)]
(if answer then goes on to give NBV, no marks)
(c)
[6]
Martina
Balance Sheet at 30 September 2010 (extract)
Cost
$
Provision for
Depreciation
$
Net book
value
$
Non-current (fixed) assets
Equipment (machine) (1)
3 200 (1)
(no mark if other asset classes included)
1 000 (1)
2 200 (1)OF
(accept OF from (b))
[4]
If answer laid out as two years separately, award only 1 mark for asset narrative and 1 mark
for correct or OF final NBV
(d)
Disposal of machinery account
October
$
15 Machinery/equipment
3 200 (1)
(accept cost, not price,
balance)
3 200
October
$
15 [Provision for] Depreciation
1 000 (1)OF
(OF from (c))
15 Bank/cash (not cash book)
400 (1)
(not scrap/disposal)
15 Income statement
1 800 (2)OF
(accept profit/loss acc, loss)
3 200
[5]
© UCLES 2010
Page 7
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
(e) Straight line [method] (1)
over three years (33⅓%) (1),
to fully depreciate over that period (1), or
[3]
Reducing balance [method] (1) (not reducing method)
at rate >75% (1)
to fully depreciate over three years (1)
[3]
Revaluation [method] (1) only
[Total: 20]
6
(a)
Ricardo – Statement of affairs at 1 November 2009
$
$
Non-current (fixed) assets
12 000 (1)
Current assets
110 000 (1)
Less: current liabilities
26 000 (1)
84 000
Capital (1)
96 000 (2)OF
[6]
(mark for caption and amount, marks for capital amount if no aliens)
(award marks for acceptable layouts)
(b)
Ricardo – Statement of affairs at 31 October 2010
$
$
Non-current (fixed) assets
14 000 (1)
Current assets (95 500 (1) – 1 500 (1))
94 000
(Provision for doubtful debts may be shown elsewhere)
Less: current liabilities
24 000 (1)
70 000
Capital (1)
84 000 (1)OF
[6]
(mark for caption and amount, marks for capital amount if no aliens)
(award marks for acceptable layouts)
(c)
Ricardo – capital account
2010
Oct 31 Drawings
31 Balance c/d
$
2009
90 000 (1)
Nov 1 Balance b/fwd
84 000 (1)OF
(OF mark only if amount
from (a))
2010
Jan 1 Bank[new][capital][cash]
(not Ricardo)
Oct 31 Net profit [or OF loss]
(no aliens for OF mark)
174 000
+(1) for all correct dates
$
96 000 (1)OF
50 000 (1)
28 000 (1)OF
174 000
[6]
Mark is for detail and amount. If account reversed, award P/L OF mark only.
© UCLES 2010
Page 8
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
11
(d)
Increase
Current assets
(1)
Long term liabilities
(1)
Decrease
(1)
Revenue (sales)
Working capital
No change
(1)
[4]
[Total: 22]
© UCLES 2010
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education
MARK SCHEME for the October/November 2010 question paper
for the guidance of teachers
0452 ACCOUNTING
0452/21
Paper 2, maximum raw mark 120
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners’ meeting before marking began,
which would have considered the acceptability of alternative answers.
Mark schemes must be read in conjunction with the question papers and the report on the
examination.
•
CIE will not enter into discussions or correspondence in connection with these mark schemes.
CIE is publishing the mark schemes for the October/November 2010 question papers for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level
syllabuses.
Page 2
1
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
21
Robbie McDonald
Income Statement (Trading and Profit and Loss Account) for the year ended
30 September 2010
$
Revenue (sales)
Less Cost of sales
Opening inventory (stock)
Purchases
Less Goods for own use
$
$
216 000 (1)
19 500 (1)
176 000 (1)
1 900 (1)
Less Closing inventory (stock)
174 100
193 600
20 800 (2)C/F
(1)O/F
172 800 (1)O/F
43 200 (2)
Gross profit
Bad debts recovered
Decrease in provision for doubtful debts
(372 – 352)
Less Wages
Property tax and insurance
(8900 (1) – 600 (1))
Administration expenses
Bank interest
Depreciation Motor vehicles
(20% × 4800)
Equipment
(3000 – 2340)
Loss for the year (Net loss)
160 (1)
20 (2)
43 380
28 200 (1)
8 300
4 410 (1)
1 550 (1)
960 (1)
660 (1)
Horizontal format acceptable
44 080
700 (1)O/F
[20]
[Total: 20]
2
(a) Assist in the location of errors
Provide instant totals of trade receivables (debtors) and trade payables (creditors)
Proves the arithmetical accuracy of the sales/purchases ledgers
Enable a balance sheet to be prepared quickly
Provide a summary of the transactions relating to trade receivables (debtors) and trade
payables (creditors)
Provide an internal check on sales/purchases ledgers – may reduce fraud
Or other relevant points
Any 2 points (1) each
[2]
© UCLES 2010
Page 3
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
(b)
2010
Sept 1 Balance
30 Sales
Bank (Dis. Chq)
2010
Oct 1 Balance b/d
Syllabus
0452
Suzie Chow
Sales ledger control account
$
2010
21 976 (1)
Sept 1 Balance
22 800 (1)
30 Bank
610 (1)
Discount allowed
Sales returns
Bad debts
Contra entry
______
Balance c/d
45 386
22 415 (1)O/F
Paper
21
$
54
21 860
488
391
100
78
22 415
45 386
(1)
(1)
(1)
(1)
(1)
(1)
(1)
[11]
Alternative presentation
Sales ledger control account
Debit
Credit
2010
$
$
Sept 1 Balances
21 976 (1)
54 (1)
30 Sales
22 800 (1)
Bank (Dis. Chq.)
610 (1)
Bank
21 860 (1)
Discount allowed
488 (1)
Sales returns
391 (1)
Bad debts
100 (1)
Contra entry
78 (1)
Balance
$
21 922 Dr
44 722 Dr
45 332 Dr
23 472 Dr
22 984 Dr
22 593 Dr
22 493 Dr
22 415 Dr
(2) C/F
(1) O/F
[11]
(c) A contra entry is when an account in the sales ledger is set against an account in the
purchases ledger. (1) Such an entry is made when a supplier is also a customer of the
business and has an account in both ledgers. (1)
[2]
(d) The sales ledger control account acts as a check on the sales ledger. If there is an error in
the sales ledger it will not be revealed by a control account prepared from the individual
accounts in that ledger.
[2]
(e)
22 415 O/F}
365
×
= 29.75 days = 30 days (1)O/F
} (1)
275 000
1
[2]
(f) Offer cash discount for early payment
Charge interest on overdue accounts
Improve credit control
Refuse further supplies on credit until any outstanding balance is paid
Invoice discounting and debt factoring
Or other relevant points
Any 3 points (1) each
[3]
[Total: 22]
© UCLES 2010
Page 4
3
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
21
(a) (i) Nominal (general) ledger (1)
(ii) Purchases ledger (1)
(iii) Nominal (general) ledger (1)
[3]
(b)
Karnail Singh
Rent account
$
2010
July 31 Total paid
Balance c/d
1430 (1)
420 (1)
1850
$
2009
Aug 1 Balance b/d
260 (1)
2010
July 31 Income Statement (1)
(Profit & Loss)
1590 (1)
1850
2010
Aug 1 Balance b/d
420 (1)O/F
[6]
Alternative presentation
2009
Aug 1 Balance
2010
July 31 Total paid
July 31 Income statement (1)
(Profit & Loss)
Karnail Singh
Rent account
Debit
Credit
Balance
$
$
$
260 (1)
260 Cr
1430 (1)
1170 Dr
1590 (1)
420 Cr
(2)C/F
(1)O/F
[6]
(c) The accruals (matching) principle states that revenue of the accounting period must be
matched against the costs of the same period. (1)
The rent relating to the financial year ended 31 July 2010 is transferred to the income
statement (profit and loss account). (1) The rent paid during the year relating to the previous
year is not included but the rent owing at the end of the year is included. (1)
[3]
© UCLES 2010
Page 5
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
21
(d) Bank manager
Assessment of prospects of any requested loan/overdraft being repaid when due
Assessment of prospects of any interest on loan/overdraft being paid when due
Assessment of the security available to cover any loan/overdraft
Lenders
Assessment of prospects of any requested loan being repaid when due
Assessment of prospects of any interest on loan being paid when due
Assessment of the security available to cover any loan
Creditor for goods
Assessment of the liquidity position
Identifying how long the business takes to pay creditors
Identifying future prospects of the business
Identifying what credit limit is reasonable
Manager (if any)
Assessment of past performance
Basis of future planning
Control the activities of the business
Identifying areas where corrective action is required
Or other suitable interested persons e.g. employees, government bodies, competitors,
take-over bidders etc
TWO business people to be identified
(1) each
ONE acceptable reason required in each case (1) each
[4]
(e) (i) Non-financial aspects
Accounts only record information which can be expressed in monetary terms. (1)
This means that there are many important factors which influence the performance of a
business which will not appear in the financial statements (final accounts) e.g. quality of
management, goodwill, skill of workforce etc. (1)
(ii) Historical cost
Transactions are always recorded at the actual cost. (1)
This means that it can be difficult to compare transactions which have taken place at
different times because of the effect of inflation. (1)
[4]
[Total: 20]
4
(a) Authorised share capital is the maximum amount of share capital a company is allowed to
issue. (2)
Paid-up share capital is the total amount of capital a company has received from its
shareholders. (2)
[4]
© UCLES 2010
Page 6
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
21
(b) (i) 4% × 25 000 shares of $1 each (1) = $1000 (1)
(ii) 3% × $15 000 (1) = $450 (1)
(iii) 5% × 60 000 shares of $0.50 (1) = $1500 (1)
[6]
(c)
Income Statement
Profit & Loss Account
Appropriation
Account
Balance
Sheet
No entry
(2)
No entry
(2)
Debenture interest payable
Ordinary share dividend
payable
[4]
(d)
Ordinary share capital
Preference share capital
Debentures
(e)
$
30 000
25 000
15 000
70 000 (1)
11 840 ×
100 (1)
= 16.91% (1)O/F
70 000 (O/F) 1
[1]
[2]
(f) If the return on capital employed increases it indicates that the company is employing its
resources more efficiently. (2)
[2]
[Total: 19]
5
(a) To compensate for the fact that she does more work than Samuel.
Or
To recognise the work that she does in the partnership.
© UCLES 2010
[2]
Page 7
(b)
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Samuel and Martha Mavuso
Balance Sheet at 31 October 2010
$
$
Non-current (fixed) assets at cost
Less Provision for depreciation
Current assets
Less Current liabilities
Working capital (net current assets)
Paper
21
$
105 950
9 350
96 600 (1)
23 562
18 400
5 162 (1)
101 762
Financed by
Capital accounts
Current accounts
Opening balance
Interest on capital
Share of profit
Less Drawings
Interest on drawings
Samuel
Mavuso
60 000
(1 091)
2 400
4 122
5 431
3 100
93
3 193
2 238
Martha
Mavuso
40 000 (1)
223
1 600
2 748
4 571
4 900
147
5 047
(476)
Total
100 000
(1)
(1)
(1)
(1)
(1)
(1)O/Fs
1 762
101 762 (1)O/F
Horizontal format acceptable
Calculation of current account balances outside balance sheet acceptable if presented
in the form of ledger accounts
[10]
(c) 23 562 : 18 400 (1) = 1.28 : 1 (1)
[2]
(d) Injection of capital
Long term loan
Sale of surplus non-current (fixed) assets
Reduction in drawings
Or other suitable points
Any 2 points (1) each
[2]
(e) Does not include inventory (stock) in the calculation. (1)
Either
Inventory (stock) is not regarded as a liquid asset – a buyer has to be found and then the
money collected. Some goods may prove to be unsaleable. (1)
Or
The quick ratio shows whether the business would have any surplus liquid funds if all the
current liabilities were paid immediately from the liquid assets. (1)
[2]
[Total: 18]
© UCLES 2010
Page 8
6
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
Syllabus
0452
Paper
21
(a) Gross profit = 247 600 – 163 100 = 84 500 (1)
84 500
247 000
×
100
1
= 34.13% (1)
[2]
(b) Increase in selling prices
Obtaining cheaper supplies
Reduction the rate of trade discount allowed to customers
Increase in the rate of trade discount received from suppliers
Passing on increased costs to customers
Different product mix
Or other suitable reasons
Any 2 points (2) each
[4]
(c)
Waseem Shah
Suspense account
$
2010
July 31 Bank
$
1520 (1)
2010
July 31 Difference on
trial balance
Rent
Balance c/d
1520
2010
Aug 1 Balance b/d
190 (1)O/F
1240 (1)
90 (1)
190 (1)
1520
[5]
Alternative presentation
Waseem Shah
Suspense account
Debit
Credit
Balance
2010
$
$
$
July 31 Difference on trial balance
1240 (1) 1240 Cr
Rent
90 (1) 1330 Cr
Bank
1520 (1)
190 Dr
(2)C/F
(1)O/F
[5]
(d) Either
Error
Number 2 (1)
Explanation This is an error of commission (1) and does not affect the balancing of the trial
balance (1)
Or
Error
Number 3 (1)
Explanation This is an error of principle (1) and does not affect the balancing of the trial
balance (1)
[3]
© UCLES 2010
Page 9
Mark Scheme: Teachers’ version
IGCSE – October/November 2010
(e)
Syllabus
0452
Paper
21
Waseem Shah
Statement of corrected profit for the year ended 31 July 2010
Profit for the year (net profit) before corrections
Increase
in profit
$
Decrease
in profit
$
90
Error 1
2
No effect (2)
3
4
$
33 000
1 150 (2)
No effect (2)
1 240
1 240
31 760 (1)O/F
Corrected profit for the year
[7]
[Total: 21]
© UCLES 2010